Moat completes £100m bond to support development

The Forward Purchase Agreement was completed through the groups subsidiary.

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Moat has today (12th August) announced the completion of a £100m bond tap to continue to support the groups development programme over the coming years.

Through its subsidiary Moat Homes Finance plc, Moat has completed the Forward Purchase Agreement to issue the fund in principal amount of its 5% Secured Bonds – due in 2041.

These new bonds were said to be priced at 2.58%, generating a ‘significant premium’ on issue and proceeds of £140m which are due to be received on 8th November this year.

The group has also announced that it intends to issue a further amount of up to £50m of its 5% Secured Bonds (due 2041) on the same date which will be ‘immediately repurchased’ and held for future sale.

Moat, which has a current development pipeline of 1,500 homes in contract, reported a surplus of £36.3m and operating margin of 39.8% for 2018/2019.

Greg Taylor, Executive Director Finance and Corporate Services, said “We are delighted with the all-in-rate we have achieved with this financing ahead of the uncertainties surrounding the potential Brexit date.

“This transaction is very security efficient for Moat since underlying security is required to support the principal amount only.

“These funds will support Moat’s development programme over the coming years.”

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